Speaker:

My superpowers. I make really, really

fast decisions when I make them.

Speaker:

I give the person that I'm going into

business with or making a decision with my

Speaker:

all and I don't keep one foot

on each side of the fence.

Speaker:

Well, hello and welcome to another edition

of the E-Commerce Evolution podcast.

Speaker:

I'm your host, Brett

Curry, CEO of OMG Commerce,

Speaker:

and today I am delighted

to welcome to the show Leah

Speaker:

Garcia. We met in Denver, Colorado.

Speaker:

We both spoke at Ezra Firestones last

ever, the final, the grand finale,

Speaker:

glue and Mastermind. Lee

and I both spoke there.

Speaker:

I think you spoke right after me,

and so I was up close to the stage.

Speaker:

I heard you talk and thought, man,

got to get you on the podcast.

Speaker:

And so here we are today.

Speaker:

But Leah is an award-winning entrepreneur.

Speaker:

She won the EY winning Entrepreneur,

Speaker:

female entrepreneur class of

2024. So that's Ernst and Young.

Speaker:

We'll hear more about that as we go.

She's built a company called New Lastin,

Speaker:

which is really has some

shocking retention numbers

that we're going to unpack

Speaker:

and that you're going to learn from.

She's been involved with the rodeo,

Speaker:

she's been on tv, she's sold on QVC.

She's done a little bit of everything.

Speaker:

It turns out as we got to talking, we

know about a bunch of the same people,

Speaker:

and so she's just an impressive

human and brings amazing energy.

Speaker:

Although she did confess to me

this energy is going to be raw.

Speaker:

It's going to be all Leah because she's

got no coffee right now, no caffeine.

Speaker:

And so I love that you're willing

to do this podcast without caffeine.

Speaker:

You're traveling, didn't have access

to coffee. So with that, Leah,

Speaker:

welcome to the show and how you doing?

Speaker:

Thank you.

Speaker:

I tried to make my screen smaller

to see your face not so ginormous.

Speaker:

And right now all I've got is

an exclamation point that says,

Speaker:

thanks for joining, but

if you can still see me,

Speaker:

I'm literally looking at a blank

screen right now, which is fine.

Speaker:

Yeah, yeah, you look great. You

look great. So yeah, perfect.

Speaker:

Perfect. This is more

like a Braille podcast,

Speaker:

and I'm actually down with that because

oftentimes I sit around staring at

Speaker:

myself in the mirror way too long.

So we're done with that. No coffee,

Speaker:

no reflection, complete,

Speaker:

just full on transparency.

Speaker:

I love it. I love it. So

amazing. So let's start here,

Speaker:

Lee,

Speaker:

I want to get into some of your story as

we go because it's really fascinating.

Speaker:

You've done a lot of amazing things, but

what is Elastin? Why did you start it?

Speaker:

And then we're going to talk about some

shocking numbers you've been able to

Speaker:

create in terms of subscriber percentages

and return customer percentages and

Speaker:

LTV and some stuff that's really,

really valuable right now.

Speaker:

But what is new lesson

and why did you start it?

Speaker:

The journey really was personal

problem, resourceful resource,

Speaker:

meaningful monetization.

Speaker:

I had an issue that was going on

as I was aging and losing elastin

Speaker:

and it manifest itself in

ways I was in television,

Speaker:

but the wrinkles, the lack of

vitality, hair was thinning eyebrows.

Speaker:

I over plucked, that was all on me.

Speaker:

Things were happening in my body as I

started aging in this world of being front

Speaker:

facing camera.

Speaker:

And I was introduced to this very

powerful protein called elastin,

Speaker:

and I met a microbiologist and I

had my aha moment where I realized

Speaker:

that this was truly

Speaker:

the miracle youth protein that

nobody else was really addressing.

Speaker:

People were talking about

collagen but not about elastin.

Speaker:

So elastin was for me that aha moment.

Speaker:

And the company was founded on science.

Speaker:

So bio designed an elastin

replenishment product for

Speaker:

scalp hair, beautiful skin.

Speaker:

And the thing that makes

it so novel is that it's

Speaker:

one of the first bio designed proteins

that's identical to the human body,

Speaker:

meaning that when you put

this product on topically,

Speaker:

your body recognizes it as native so

it doesn't fight with it. And now they

Speaker:

use fancy words like

biomimetic bioidentical,

Speaker:

but your body loves these types of

proteins. It says, oh yeah, I make this,

Speaker:

I produce this. I know what to do with

this so that I'm going to work for you.

Speaker:

And it's probably one of the

most natural ways to continue

Speaker:

getting the results that you're looking

for. So I fell in love with the science,

Speaker:

even though I'm not a scientist,

Speaker:

but that's how the whole business

started was I had a personal problem.

Speaker:

I found this solution which was elastin.

Speaker:

It wasn't being addressed in

the marketplace, and I thought,

Speaker:

I can really change lives here.

Speaker:

I can do something for women, especially.

Speaker:

I started with women that

wouldn't just give them results,

Speaker:

but that would give them so much

something bigger like their confidence,

Speaker:

their identity, their sense of self,

and that's what we're doing at Elastin.

Speaker:

That's fantastic. And so your

core products are hair lash, brow,

Speaker:

correct.

Speaker:

So talk a little bit about

your hero products and then

we're going to talk about

Speaker:

your incredible results and

what we can learn from 'em.

Speaker:

I started the company

with two hero products,

Speaker:

which is lash and brow, and boy,

Speaker:

timing is everything. So

we did have some skincare.

Speaker:

I've been using the

skincare for about a decade,

Speaker:

but it was a prototype formula and wasn't

really commercialized, but I used it.

Speaker:

I've always been using science-based

skincare, wound healing,

Speaker:

tissue regeneration. I've

never been an Avon girl.

Speaker:

I've never used anything that was sort

of what you would at a department store.

Speaker:

So I don't know if that's just because

of my professional athletic background.

Speaker:

You're always playing around with what's

the newest nutritional supplement or

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what's the newest thing that you can

concoct so that you can go faster or climb

Speaker:

higher and do all the things

that you want to do to win.

Speaker:

So the lash in the brow serum

had demonstrable results

Speaker:

within some people a

couple of weeks, six weeks,

Speaker:

eight weeks by 12 weeks.

It was just mind boggling, the changes.

Speaker:

And so we had these gorgeous

before and afters and

Speaker:

that was a really fun

product to bring to market.

Speaker:

But my dream was always to

be able to tackle the hair,

Speaker:

but I just knew that that was to

try to get the same amount of active

Speaker:

ingredients in a 50 mil container that

would give the same demonstrable results

Speaker:

in an amount of time that wasn't going

to cost somebody their arm and a leg.

Speaker:

That was the journey that took a

wee bit longer to get that really

Speaker:

pinpointed so that we just didn't have

a $400 bottle that we were trying.

Speaker:

To sell. Yeah, little bit difficult.

Speaker:

Even if the results are great and

we all want to look youthful enough,

Speaker:

vibrant hair and skin

and brows and lashes,

Speaker:

hard to justify 400 bucks for a

bottle of shampoo. That's for short.

Speaker:

So let's unpack something Leah,

Speaker:

because there's a lot that's

impressive about you, by the way.

Speaker:

You're an amazing presenter

on stage, you look great,

Speaker:

you take fitness seriously.

You're aging gracefully.

Speaker:

You got so many cool things going

on, but you shared this with me.

Speaker:

You have 80% blended returning revenue,

Speaker:

so 80% of your revenue is

blended returning customers,

Speaker:

65% subscription based for customers.

Speaker:

Your A OV is 90 in the 94th

percentile of your vertical,

Speaker:

and then your LTV is off the charts.

We'll talk about that in a minute.

Speaker:

But how have you done this?

Because I know this is by design.

Speaker:

You said this was the goal from the

beginning. I know it's a great product,

Speaker:

but how do you get to that 65% of

your revenues from subscriptions?

Speaker:

80% is blend to returning

customers. How do you do it?

Speaker:

Well, first of all, you better

have a product that works, right?

Speaker:

And so now there's all

sorts of fancy words for it,

Speaker:

but back in the day it was word

of mouth and the trajectory to

Speaker:

getting a really nice return customer

isn't just putting in cancellation

Speaker:

prevention, finding the right

tech stack, which is key.

Speaker:

I think that if you break it

down into four categories,

Speaker:

you're looking at discover,

Speaker:

discover your customer pain points,

Speaker:

that's going to be the first thing that

you need to do. Put skin in the game,

Speaker:

literally something that is a personal

problem that you've lived through that

Speaker:

you can then identify and that immediately

is going to give you a product that

Speaker:

people are going to want and

to understand and can be the

Speaker:

heartbeat of the formula.

Speaker:

And then you want to make sure that you're

Speaker:

identifying the things in your

business model that are the defeat,

Speaker:

repeat moments, what's defeating them?

Is it a bad value proposition? Is

Speaker:

it a shitty product which we don't have?

Speaker:

And then the final one,

which I think is really,

Speaker:

really key is do you have a

Speaker:

gap?

Speaker:

Is there a frustrating technical

experience for the customer?

Speaker:

Because let's face it, nobody wants to

get to the finish line to buy something,

Speaker:

to have tech breakdown or their

website not work or gosh dang it,

Speaker:

I've already given you my

credit card five times.

Speaker:

Why do I have to go

find that number again?

Speaker:

There's these points that happen in a

customer journey that will just throw them

Speaker:

off. They'll just, I'm done. I'm

done with you. That was frustrating.

Speaker:

It wasn't fun, it wasn't pleasant.

Speaker:

So these frustrating experience will

break down that repeat customer.

Speaker:

And then the biggest one for us, honestly,

Speaker:

we did really well up to, geez,

Speaker:

last year because we had

such a great product,

Speaker:

we cared so deeply about our customers,

we did nice things for our customers,

Speaker:

but I still didn't have

the right tech partners,

Speaker:

and that was really the missing link

for me getting up to this 80% and

Speaker:

65% was finally plugging in the right tech

Speaker:

partners.

And my tech stack isn't anything novel,

Speaker:

but it just started working once I had

left hand and right hand talking to one

Speaker:

another.

Speaker:

Yeah, so it all starts

with product, right?

Speaker:

We got to have a product that is amazing

that we want to keep ordering again and

Speaker:

again. That's so good that we're telling

our friends about it, things like that.

Speaker:

That's solving a real problem. We

got to then make the process easy.

Speaker:

We've got to have good tech solutions.

There's a lot that goes into that.

Speaker:

But what's interesting, and you

talked about solving a real problem,

Speaker:

I want to give a quick shout out to Dean

Brennan. He was a guest on the podcast,

Speaker:

CEO of Heart and Soil.

Speaker:

These are meat based

supplements as a weird concept.

Speaker:

I do plant-based supplements

in these supplements,

Speaker:

but he tipped me off on this joint care

because as I've been aging, I work out,

Speaker:

I run, I do things, joints hurt,

Speaker:

and he tipped me off to this joint

care supplement. It's fantastic.

Speaker:

I've never taken anything

like I don't ache at all.

Speaker:

We went on a trip to Vegas just before

actually the Denver event where I spoke

Speaker:

with you and a couple

of guys were with me.

Speaker:

We were running on the pavement and they

were all complaining about being sore.

Speaker:

And I'm like, I feel great. My

joints don't ache at all. Anyway,

Speaker:

so that's a product where

I started taking that.

Speaker:

I am not going to unsubscribe from that.

Speaker:

That is going to become part of

my routine because I feel awesome.

Speaker:

And so same is true for you though,

man, the skin is looking good,

Speaker:

the brows looking good,

the hair's looking good.

Speaker:

We're just going to keep buying.

So that makes a ton of sense.

Speaker:

Talk this out. Lemme on to

what you just said because

Speaker:

that is so key, right? So you have

a product, he tells you about it,

Speaker:

you use it, it works, and then what

do you just do? You told me about it.

Speaker:

Now I'm curious. And that's

what we're talking about.

Speaker:

That's how you get that

sticky customer. It's no one.

Speaker:

If I can get on that soapbox again,

and you've heard me get on my soapbox.

Speaker:

If you've got a product because you just

want to make money because you want to

Speaker:

sell, because you just want

to cut corners, do people,

Speaker:

if you will, they might

buy maybe once or twice,

Speaker:

but ultimately it's not

going to be the longevity.

Speaker:

It's not going to be what's going to

serve them well in the long run because

Speaker:

ultimately people don't want crap.

They want something that works.

Speaker:

It's going to be grind.

Speaker:

You're always going to have to be

hustling for that next sale where,

Speaker:

whereas with you with your

product now 65% of your revenue

Speaker:

comes in automatically

through subscriptions,

Speaker:

and then another 15% comes in

through repeat customers anyway,

Speaker:

so it's really awesome.

Speaker:

Talk about some of the things you

did to remove friction from the

Speaker:

shopping process to make

subscriptions easier.

Speaker:

And you have any insights on,

Speaker:

do you get first purchase take rate on

subscriptions or is it more like they try

Speaker:

it once and then you're getting them on

subscriptions through email and SMS and

Speaker:

remarketing campaigns? Talk

through some of the tactics there.

Speaker:

First. Yeah. Okay. So

when I first started,

Speaker:

I bootstrapped the company and my claim

to fame was that I went from zero to

Speaker:

17 and a half million before

I hired my first employee.

Speaker:

No way.

Speaker:

Yes, that's the claim to fame.

That being said, I did have,

Speaker:

excuse me,

Speaker:

I did have an agency that I

had hired that really helped me

Speaker:

with my digital marketing

and they helped me with my

Speaker:

paid media marketing.

Speaker:

So I wasn't able to really control.

Speaker:

They had their things

they were working on.

Speaker:

So I started with bold subscriptions

and Bold just did not work for me.

Speaker:

We didn't have the right website

and the right theme and the right

Speaker:

anything to manage that

subscription platform.

Speaker:

And then we transferred.

Speaker:

Once I started professionalizing and

bringing in employees and we're looking at

Speaker:

like 20, 21 at this point,

Speaker:

then I transferred over to another

subscription platform and that one didn't

Speaker:

work out at all.

Speaker:

They were very tech heavy and I still

didn't have the internal tech because I

Speaker:

was bringing everything in house. So

it was just a mismatched relationship,

Speaker:

just literally oil and vinegar.

And so then

Speaker:

ultimately I got a cold call from

a recharge rep that said, Hey,

Speaker:

Leah, so-and-so from Recharge and I

don't like cold calls, but I said,

Speaker:

you've got five minutes to convince me

why I should switch to your platform.

Speaker:

And then ultimately we arm wrestled

and negotiated a good contract,

Speaker:

which is something that was very important

to me. And then I signed on and when

Speaker:

I go, I go deep. I don't

wish my superpowers,

Speaker:

I make really, really fast

decisions when I make them.

Speaker:

I give the person that I'm going into

business with or making a decision with my

Speaker:

all, and I don't keep one foot on

each side of the fence. It's amazing,

Speaker:

a good

Partner.

Speaker:

So they then introduced me

to a web development team

Speaker:

that at first I didn't hire,

but I really liked them.

Speaker:

And then eventually I realized that I

still didn't have left hand and right hand

Speaker:

talking and that these teams

needed to all be working in Shopify

Speaker:

Plus.

Speaker:

So my basis for my tech

stack is literally absolute

Speaker:

web recharge and Shopify Plus.

Speaker:

And then from there you can build out

with the Klaviyo's and the postscripts and

Speaker:

all the new things that come around.

Speaker:

But because they all work

together collectively and kind of

Speaker:

synergistically,

Speaker:

that made my job easier

so that we could use the

Speaker:

insights. And I'll tell you with

Recharge, constantly innovating,

Speaker:

they came out with their

cancellation prevention,

Speaker:

which was telling me I knew

my customers were overstocked,

Speaker:

but I didn't know to what degree.

Speaker:

So then when I find out that I'm

30% plus overstocked with customers,

Speaker:

which is why they're churning, then

I can really do something about it.

Speaker:

So then my web tech team got together

and we created a really bespoke,

Speaker:

a really bespoke

Speaker:

journey whereby now we changed

our subscription so that we

Speaker:

open with a 10 week supply because

Elastin is a product that you need to use

Speaker:

over time to see the results.

Speaker:

Got.

Speaker:

It. So instead of maybe them

picking haphazardly six weeks,

Speaker:

despite the fact that we tell them

otherwise, then they get overstocked.

Speaker:

Then we transfer from that 10

week supply to a five week supply,

Speaker:

for example,

Speaker:

so that they now have a manageable

cadence coming in with their

Speaker:

subscription. And that

immediately turned things around.

Speaker:

I mean that alone,

Speaker:

we saw an uptick in our subscription

Speaker:

take, and then we saw a decrease in churn.

Speaker:

So churn can hover between eight to 10 ish

Speaker:

percent, which me I'd

love churn to be about 2%.

Speaker:

No doubt.

Speaker:

I'm a dreamer.

Speaker:

But the customers that were sticking

around then became stickier,

Speaker:

if you will.

Speaker:

And that's when that lifetime value for

our subscription customers could also

Speaker:

be identified as a ridiculous number

Speaker:

compared to non-subscribers.

Speaker:

I think it's $146 for our,

Speaker:

no, excuse me,

Speaker:

$436 for our subscriber lifetime value

Speaker:

compared to 186 for non-subscribers.

Speaker:

Way.

Speaker:

More than double.

Speaker:

That's huge, right?

Speaker:

It's huge.

Speaker:

And then we do that smart

cancellation prevention,

Speaker:

which then saves us an additional

7% of would be cancellations.

Speaker:

And that's all done through automation

and thoughtful touch points.

Speaker:

So something that we

just didn't have before,

Speaker:

but I'll tell you the

biggest thing for me,

Speaker:

the thing that really turned my business

is that our customer service team,

Speaker:

which we have an in-house team of work

from home moms that are just amazing.

Speaker:

It's amazing.

Speaker:

We have always been one of the

top performing brands on gorgeous,

Speaker:

the platform that we use for

cx, our tickets went down 50%,

Speaker:

I'm pausing there.

Speaker:

Tickets went down 50%

by having all of these

Speaker:

optimizations, all of this website flow,

Speaker:

this smarter website,

this smoother website,

Speaker:

all of those friction points, once

they were removed, I'm saving money,

Speaker:

I'm making more money, and

my customer service team,

Speaker:

it has 50% fewer tickets,

happier customers,

Speaker:

and we're not even paying that

higher platform anymore. On Gorg.

Speaker:

We'd had to keep up in

our fee for our agreement

Speaker:

because we were just so

much customer service,

Speaker:

so much customer service. And

now that's being eliminated.

Speaker:

It's amazing. So now you're cutting down,

Speaker:

you're able to staff less or you're

saving on costs for answering tickets.

Speaker:

But think about it from

the customer's perspective.

Speaker:

Nobody wants to submit a ticket,

nobody wants to interact.

Speaker:

Even if customer support is

delightful, it's a stay-at-home mom,

Speaker:

and they're just a joy to talk

to. I still don't want to do it.

Speaker:

And so if you can eliminate that,

it's even better. So part of that,

Speaker:

so let's talk about why.

And I want to look at,

Speaker:

you said something a minute ago was

really important. You said, Hey,

Speaker:

people need to take this for

10 weeks to see the results.

Speaker:

So that's what you started selling, right?

Speaker:

So is that like a 10 week bundle or just

sign up and you get it for 10 weeks or.

Speaker:

Two pack for example,

just a two pack of lash,

Speaker:

two pack of brow or a two

pack of the hair treatment.

Speaker:

And that's the vibrant scalp

treatment. So use it consistently,

Speaker:

use it every day. You need to

Speaker:

premix that fuel, if you will.

Speaker:

You want to get those hyper results

in the beginning because if not,

Speaker:

people will lose interest.

Speaker:

It's already hard enough that I am not a

mascara where you put it on and you get

Speaker:

longer lashes immediately.

Speaker:

This is something that depending on

where you are naturally with your hair

Speaker:

growth cycle, it takes a

while. Get those real results.

Speaker:

So some people, depending on where

they're at with that growth journey,

Speaker:

they may have results right away.

But for the most part, aging women,

Speaker:

who is our demographic,

me, I am the demographic,

Speaker:

we don't exactly respond.

Those young bucks do.

Speaker:

So it takes us a little while to

get that diesel engine revved up

Speaker:

and we just need to make sure that

people are using it and then they start

Speaker:

seeing results. And that's when the

excitement sets in. And then when.

Speaker:

You at that point, and then you.

Speaker:

Go for Vegas with your buddies and your

knees don't ache, you're like, hello?

Speaker:

Yeah, exactly. Tell me what you're

taking. Tell me what you're taking.

Speaker:

Yeah,

I wrote a lot statement.

Speaker:

So it's a two pack so they can use it

for 10 weeks, get the best results.

Speaker:

So that's the first start.

The first piece says,

Speaker:

what do they need to take

to get the best results,

Speaker:

whether it's a physical product,

Speaker:

something you're using or something

you're putting on ingestible, whatever.

Speaker:

So what do they need to take to get

the best results? Let's sell them that.

Speaker:

And then what did you do in

terms of messaging or just making

Speaker:

it easier to understand and to say yes to?

Speaker:

Talk to me about some

specific tactics there.

Speaker:

The tactic, I think

that's the most important,

Speaker:

just if we're talking D two C

and just brand building is I

Speaker:

had a lot of fractional

copywriters for a while,

Speaker:

so we didn't have a single voice,

Speaker:

and then we hired a gal who is

leading our brand and our brand

Speaker:

copy and her copy then hit that whole

Speaker:

customer journey.

Speaker:

So what we see on our macros from

customer service is what we see

Speaker:

on the post-consumer flow

for our email marketing,

Speaker:

it's what they're getting

when they're seeing

Speaker:

the ad perhaps on meta or wherever

they first found out that top of the

Speaker:

funnel perspective. So they're seeing,

Speaker:

here's what they're seeing

in the top of the funnel,

Speaker:

here's the middle of the funnel,

here's the bottom of the funnel,

Speaker:

here's the email marketing campaign,

here's how it's flowing with the SMS,

Speaker:

here's the information they're

getting from all angles. And it all

Speaker:

sounds the same and it all makes sense.

Speaker:

So you're not sending mixed

messages anymore. And before,

Speaker:

I'm probably guilty of having sent

more mixed messages or just not

Speaker:

having that through line,

Speaker:

that continuity so that we're all

just really making sure that people

Speaker:

understand what we're delivering

to the customers. And it's a serum.

Speaker:

I'm at my temporary desk

here, but for example, here's,

Speaker:

here's a sample of the

vibrate scalp treatment,

Speaker:

the lash and the brow

that's in just a single box.

Speaker:

This was one of our promo boxes that

we put together. So they're all serums.

Speaker:

You use 'em twice daily, once

in the morning, once at night,

Speaker:

and people will inadvertently say, oh,

Speaker:

so I need to keep using that product,

and if I stop using it, it stops working.

Speaker:

And the answer is yes. If you stop

drinking water, you get dehydrated. Of.

Speaker:

Course, yeah.

Speaker:

If you stop eating food,

you get hungry. If you stop,

Speaker:

I want to vitamin I can take.

Speaker:

That's.

Speaker:

It. Things change. But it's

still that age old question.

Speaker:

And that comes from, I kid you not,

Speaker:

that comes from old school

mentality before people really got a

Speaker:

little bit smarter to realize that

consistency is what delivers results in

Speaker:

everything. If you want

to stay fit, stay fit.

Speaker:

You, I've got to keep working out. I've

got to keep sleeping well every night.

Speaker:

Come on, that's want to

do it once, it's so good.

Speaker:

But it's not necessarily even

a nice to have once you start

Speaker:

fighting back mother

nature, it's a must have.

Speaker:

And this is where that longevity game

comes in there because what we're doing to

Speaker:

biohack our bodies and our

health and our wellbeing

Speaker:

is really the rage right now. And

I've been biohacking since day one.

Speaker:

I think the biggest thing I

did to biohack was not have.

Speaker:

Children. I'm sure I've never.

Speaker:

Said that out loud before.

Speaker:

New biohack don't have kids.

Speaker:

Turns out that's also a great

savings plan. Yeah, yeah, yeah.

Speaker:

I know a lot of parents that get pretty

dang stressed right now in this world.

Speaker:

There's enough stress going on.

Speaker:

So I always laugh that my husband and I

are able to just pick up and go whenever

Speaker:

we want. We've got all this freedom.

And I could also focus on the business.

Speaker:

So truthfully,

Speaker:

my business is those are my children, my.

Speaker:

Members.

Speaker:

That's who I care about right.

Speaker:

Now. I love that. I love

that. My wife and I,

Speaker:

we can get up and travel

anytime we want to as well.

Speaker:

We just have eight kids that

we have to tow around with us.

Speaker:

Actually they don't all live

at home. So it's not eight,

Speaker:

it's only like five or

six. It's no big deal. But.

Speaker:

That to me,

Speaker:

I think that single voice to the

question going back to What are the

Speaker:

mechanics, what can you do right now?

Speaker:

What are the actionable items that

some of the individuals listening to

Speaker:

can take and take from this?

Speaker:

And you talked about that

ability for us to get on the

Speaker:

phone.

Speaker:

And something that I always say flies

in the face of what we've been taught is

Speaker:

to really know your customer.

Speaker:

So we do have a lot of

older women who have felt

Speaker:

unseen and unheard and

undervalued in their lives.

Speaker:

And so our customer service team is

empowered to spend however extra time they

Speaker:

need on the phone with those

individuals until that individual

Speaker:

feels like they've gotten what they need.

Speaker:

And sometimes they can be on

the phone for a long time,

Speaker:

which is why our gorgeous score

has probably gone from a 4.8

Speaker:

and not to a five. I mean,

Speaker:

we're still at 94.8% of

all gorgeous platforms.

Speaker:

That's that 5% stat.

Speaker:

But we stay where we're

at because one of the

Speaker:

metrics that's timed on gorg is

how quickly do you answer those

Speaker:

questions for people? And sometimes we

just don't answer them that quickly.

Speaker:

We'll respond quickly,

but then we take our time.

Speaker:

Take your time. But yeah,

Speaker:

and it's more about optimizing for

satisfaction than it is to hitting some

Speaker:

metrics that may indicate

satisfaction, but not always.

Speaker:

And so I love the way you guys do that.

This idea of consistent communication,

Speaker:

I've heard it's called the

golden thread or consistency.

Speaker:

So every message we share, whether it's

a video with static image, it's on med,

Speaker:

it's on YouTube, it's on Google,

it's an email, it's an SMS,

Speaker:

it's all saying the same

thing. It's reinforcing,

Speaker:

maybe we're hitting the same message

from a couple of different angles,

Speaker:

but ultimately it's the same

thing when you get on the lander.

Speaker:

Also the same message.

Speaker:

Simplification and clarity

are super important.

Speaker:

Sometimes we overcomplicate things

and a confused customer does not

Speaker:

buy. So what are some of the messages,

Speaker:

the go-to messages or what are you trying

to communicate when you're creating

Speaker:

this consistency across all.

Speaker:

Channels?

Speaker:

We fall back always on our pillars

at elastin. So real science,

Speaker:

real results, real people

and real responsibility.

Speaker:

But that's the pillar.

Speaker:

And then from the pillar then you

identify what is the pain point for the

Speaker:

customer. And it really always

boils down to their sense of self,

Speaker:

their confidence, their sense of identity,

Speaker:

their desire to be the best version of

Speaker:

themselves. So I'm going to go

back to what you said. You said,

Speaker:

I started taking this supplement,

I feel so much better.

Speaker:

I'm not hurting anymore. I wake

up, maybe you don't need coffee.

Speaker:

And all of a sudden

now you didn't say, oh,

Speaker:

I like where they source their product.

Speaker:

They did a really good job of where

they sourced and they're environmentally

Speaker:

friendly and they've done all

these things. Well, that's a given.

Speaker:

Now you need to have all of that.

Speaker:

You can't come into a beauty brand

right now if you're not sustainable,

Speaker:

if you are not taking care of

vegan and cruelty-free and no

Speaker:

preservatives and all of the lists. So

we call those our safe science standards,

Speaker:

but you can't lead with that

because nobody buys a product.

Speaker:

Nobody buys a product because it's got

the best biodesign proteins and the most

Speaker:

peptides.

Speaker:

For sure.

Speaker:

That doesn't sell. What sells is,

does it do what they want it to do.

Speaker:

So the message has to always be about

what the customer needs and what

Speaker:

that pain point is that we're solving

or what that aspiration is that they're

Speaker:

looking to gain. And then ultimately,

Speaker:

if we don't deliver the

product that really works,

Speaker:

they're never going to come back again.

Speaker:

But the other flip side is

because of where people are,

Speaker:

whether they've got thyroid

Speaker:

post-treatment, post stress,

aging, loss of elastin,

Speaker:

naturally too much sun, exposure,

exposure, environmental,

Speaker:

stressing out about what's happening in

our political and our culture right now,

Speaker:

all of these things are causing

people to lose their hair.

Speaker:

And we saw this during Covid as well.

Speaker:

So what we also have to do at

Neulasta is we have to look at how we

Speaker:

can kind of bundle that and make

sure that we're still giving the

Speaker:

customer the time they

need to get the results.

Speaker:

So if 12 weeks isn't enough,

Speaker:

I'm going to take care of them and give

them more product so that they get the

Speaker:

results they're asking for. And whether

I do that sometimes with free product,

Speaker:

sometimes with a deeper discount, but

if they call me, I will literally say,

Speaker:

you didn't start this journey because

you were just trying something.

Speaker:

You want something.

Speaker:

So I'm going to give that to you for

as long as it takes till you get that

Speaker:

result.

Speaker:

That's so good. That's so good.

Speaker:

Talk to me about the

process of reducing churn.

Speaker:

You talked about some

of the programs you run.

Speaker:

If someone's about to cancel their

subscription, how do you mitigate that?

Speaker:

What are some of the

strategies that you've used?

Speaker:

Most recently, it's

going to go back to just

Speaker:

that very,

Speaker:

very powerful buy box that

people are seeing so that the web

Speaker:

functionality, I believe I mentioned

this, smoother, faster, smarter,

Speaker:

but that buy box, which is the small

powerful decision point, right?

Speaker:

That's transformed so

that it now has above

Speaker:

the fold because before

it wasn't above the fold,

Speaker:

but it's a smarter way of

customers to get the right

Speaker:

cadence with the right

subscription that they needed.

Speaker:

And then as they go through

the checkout process,

Speaker:

not too many more decisions to make,

Speaker:

but then there are some upsells

and there are some cross sells,

Speaker:

but mainly trying to serve the

customer with a very smart flow

Speaker:

so that they don't have to

get confused or question it.

Speaker:

So the result of that alone

with that buy box and the web

Speaker:

functionality was a 13.4%

increase in conversion rate.

Speaker:

So we immediately started getting that.

Speaker:

And then the next part of

it is just continuing to

Speaker:

innovate when we see

something that's not working.

Speaker:

We work with the web partner now

and we try to innovate and solve

Speaker:

around the entire customer journey and

anticipate their needs so that we can

Speaker:

exceed those expectations.

Speaker:

Yeah, it's so good. I'm looking

at your detail page now,

Speaker:

and we'll put this in the video

version. If someone's on YouTube,

Speaker:

they can see it. But I love

the way this is laid out.

Speaker:

So the top section you automatically

selected subscribe and save 25%.

Speaker:

You got three different options,

deliver every eight weeks.

Speaker:

In the middle it says deliver 10 weeks,

Speaker:

it's got a check mark and it's bolded

and it says recommended right under it.

Speaker:

And then or deliver every 12 weeks. And

it says free shipping, cancel any time,

Speaker:

full flexibility, try really compelling,

Speaker:

and then it's got the strikethrough price

and the price that you'll pay saving

Speaker:

25%. And then below that you

could choose a one-time purchase.

Speaker:

You save 12% that way. What is,

Speaker:

so you talked about 65% of

your revenue is subscriptions.

Speaker:

What's the take rate on subscriptions

when someone's checking out with these

Speaker:

products?

Speaker:

I don't have that answer

off the top of my head.

Speaker:

It's got to be a pretty high,

Speaker:

it's got to be a high take rate since

everything else is off the charts as well.

Speaker:

Being the owner of the

company and the founder,

Speaker:

I always get just a little bit

puckered up there because you still

Speaker:

have people who want that big deep

discount and they're playing the game.

Speaker:

So you're always going to get

the people who are like, oh,

Speaker:

I can get free shipping. Oh, I

can get this really deep discount,

Speaker:

possibly almost 30% on my first order.

Speaker:

And they have absolutely no

intention. They're playing the field.

Speaker:

They might be doing the stance

with a lot of other companies,

Speaker:

but ideally if they've purchased

two products from us or the Tupac,

Speaker:

then they are going to see results.

Speaker:

And they might have a aha

moment themselves where they

stick around for a little

Speaker:

bit longer. But

Speaker:

it is high,

Speaker:

and we're working on it because we

actually didn't have as robust of

Speaker:

a landing page funnel as we do now.

Speaker:

It's still not the Ezra Firestone funnel,

Speaker:

but that is something that we're working

on so that we have the capacity now

Speaker:

to build out more landing pages

so that it makes it easy for that

Speaker:

first take rate. I want to

say 80%, but I might be wrong,

Speaker:

so don't quote me and hold

me to that particular number.

Speaker:

With every other number being off the

charts, the take rate's got to be really,

Speaker:

really healthy as well.

Speaker:

And so can you talk about the landing

page work that you guys are doing?

Speaker:

Is that tying specific

offer to specific ad

Speaker:

and what are you doing and any

interesting learnings with that journey?

Speaker:

Yes, better. It's still not set up.

Speaker:

I've seen so many great landing pages

that I start falling in love with,

Speaker:

but if they're seeing an ad for,

Speaker:

with a particular human being being

featured in an age category and an

Speaker:

offer for lash,

Speaker:

and then they come over to a PDP

page as a checkout page versus going

Speaker:

to a landing page where then we continue

selling them on that journey where then

Speaker:

we get that buy box that really

speaks to what they're after,

Speaker:

because at that point, they

don't want to mess around.

Speaker:

They just want to get in there.

I'm like, yeah, that's what I want.

Speaker:

That's what I want to buy.

Speaker:

So you want to make sure that

you're not confusing them.

Speaker:

And that's what we've been trying to do

is follow that journey from what ad they

Speaker:

saw on meta, for example,

Speaker:

to where they land and get that checkout.

Speaker:

And it's the landing page strategy

is by far the best performer,

Speaker:

but we also find that our PDP pages are

equally as good. And back in the day,

Speaker:

we were sort of, and we would just go

to the homepage and that was a disaster.

Speaker:

I mean, it works a little bit, but it's

just, it's too much. It's like too much.

Speaker:

Nobody wants to.

Speaker:

Yeah, you're introducing too

many options in most cases.

Speaker:

But I will say, yeah, your PDP, which

is what I just showed a second ago,

Speaker:

it's fantastic. And.

Speaker:

That's only the landing page.

Speaker:

So I can send you links to

get to the landing pages,

Speaker:

which are those mysterious pages that

unless you're following a particular link,

Speaker:

you'll never find again. I was laughing

about that the other day. I'm like,

Speaker:

geez, even I own the company and

sometimes if I can't find my landing page,

Speaker:

I'm like, what's that foreign slash,

Speaker:

where did we go and how do you get back

to it again? So funny, once I lose it,

Speaker:

man, I can't find it again.

Speaker:

And that's an old anchor trick that I

learned from back in the day of direct

Speaker:

response infomercial is they

were just classic landing

Speaker:

page.

Speaker:

Marketers.

Speaker:

It was just.

Speaker:

Guthy Riner legends, legends in the game.

Speaker:

And so what did you do with them again?

Speaker:

Was that one of your products

or you worked with Guthy Riner?

Speaker:

No, but I was in the infomercial world,

Speaker:

so that's kind of where I cut my teeth

with direct response marketing is I

Speaker:

started in the direct response.

Speaker:

I was selling on HSNA particular AB belt,

Speaker:

and then I helped launch the

contour core sculpting system,

Speaker:

and that's a product that was in 2008,

Speaker:

one of the most successful

shows of its time.

Speaker:

And we went from zero to 220 million

Speaker:

in about three years,

Speaker:

and we had a seven to one media

Speaker:

marketing efficiency ratio.

Speaker:

So.

Speaker:

Seven to one.

Speaker:

A seven mer. Everyone listing is like.

Speaker:

Come, we're back in the day,

Speaker:

the Anthony Sullivans

and the Cindy Crawfords,

Speaker:

but we were watching them, they were

watching us. We were all competing.

Speaker:

But it was back,

Speaker:

it was in the good old days

where crepe erase was rocking.

Speaker:

And I mean, I am old,

Speaker:

so I remember the Suzanne Summer's in.

Speaker:

I remember watching the ThighMaster.

Speaker:

X.

Speaker:

90 XI bought because of P 90 X. Yeah,

Speaker:

actually friends that ran

the erase campaigns and.

Speaker:

Stuff. But I always ask, do we reflect,

Speaker:

and this is something I said in one of

my presentations recently is do we ever

Speaker:

reflect on that is really where we learned

the formula for our direct response

Speaker:

marketing. And they had three segments,

Speaker:

28 minute show compelling

problem solution,

Speaker:

and H one had a call to action. So if

you're jumping in somewhere in between,

Speaker:

it's here's how we're going to

save you time, money, energy,

Speaker:

get you what you're looking for. Here's

your call to action. If you order now,

Speaker:

you're going to get this, this, this,

and this. But wait, there's more.

Speaker:

And all that stuff worked. And

you know what? It still kind of.

Speaker:

Works. It still works. Maybe you're

executing it a little bit differently.

Speaker:

But the psychology there,

the problem solution,

Speaker:

the presenting it in a compelling way

and an engaging way with high energy,

Speaker:

it still works. And that's something

you and I were talking about.

Speaker:

I'm a huge YouTube guy.

Speaker:

We are seeing a lot of people that

have been historical TV advertisers now

Speaker:

trying YouTubes. We're leaning into that.

Speaker:

Love.

Speaker:

It. But I'm also seeing

some D two C brands,

Speaker:

brands that are born online that

are now leaning into connected tv,

Speaker:

whether that's through

YouTube or other platform,

Speaker:

and they're dabbling in TV advertising,

but it's direct response style,

Speaker:

TV advertising,

Speaker:

getting someone to take an action to

visit a site to get a free download or to

Speaker:

free trial, whatever.

Speaker:

Just works. I think we need to be more

clever and I need to meet more of a brand

Speaker:

recognition. I tried some,

Speaker:

our mutual colleague Stacy

helped me try to buy some linear

Speaker:

TV spots. It just didn't work for us,

Speaker:

but we didn't do enough. It

wasn't long enough, deep enough.

Speaker:

But elastin as big of a

brand as I think we are,

Speaker:

we're still not a name brand.

Speaker:

So you can walk down the street and people

aren't going to really recognize us.

Speaker:

So we're staying somewhat niche

in that. We have, I believe,

Speaker:

the best science in the industry,

Speaker:

and I would challenge anyone to match our

38 US and international patents all in

Speaker:

the elastin space.

Speaker:

It's.

Speaker:

Amazing.

Speaker:

We've got a category that no one else

is really focusing on to our depth

Speaker:

and breadth. But at the end of the

day, again, science isn't selling.

Speaker:

So now I've got to be able to just

communicate to people that we have a

Speaker:

beautiful product with a founder

and an entire team that cares

Speaker:

deeply for that customer journey and

that we're going to do everything in our

Speaker:

power to get them the results that

they want. And they can also trust.

Speaker:

I think small brands,

Speaker:

one of the beauties is that they can

trust the integrity that goes behind it

Speaker:

and that what we say is what we do.

Speaker:

Sometimes when you get that

thought of a big brand,

Speaker:

you kind of wonder did they lose it?

Speaker:

So if JJ buys a business and all of

a sudden you see it on the shelf at a

Speaker:

target, then old school

people would think, oh,

Speaker:

they must have done something different.

Speaker:

Now it's lost its allure or it

doesn't have the same formula.

Speaker:

And maybe they're right.

Speaker:

Maybe people take a formula,

Speaker:

they buy a company and then they fairy

dust the active ingredients and it might

Speaker:

not have the same punch that happens.

Speaker:

Right? Right. Yeah. I think

your passion rings true.

Speaker:

Listening to you talk and if someone

can see you or hear you talk in an ad,

Speaker:

it's clear you're going to do whatever

is necessary for someone to get the

Speaker:

results that they want, which is

great. I want to kind of end on this.

Speaker:

We only have a few minutes left,

Speaker:

but times are uncertain right

now at the time we're recording,

Speaker:

we're dealing with some

tariff, chaos and madness.

Speaker:

Consumer confidence is at a low.

Business owners are worried.

Speaker:

We work almost exclusively

with D two c e-commerce brands.

Speaker:

Many of our clients

don't import from China,

Speaker:

and so they're feeling a little

bit better than those that do,

Speaker:

but there's still just

uncertainty everywhere.

Speaker:

So what advice do you have and

what are you leaning into now when

Speaker:

times are uncertain?

How are you operating?

Speaker:

I have been guilty of falling

into a trap of feeling

Speaker:

the scarcity mentality and the panic,

Speaker:

but I am doing everything that I can to

try to come from a point of abundance,

Speaker:

and that might be a little too

metaphysical for this podcast,

Speaker:

but I literally need to stay true to

Speaker:

what we do over here. We need to

make money to stay in business,

Speaker:

but do I need to make a 94% contribution

Speaker:

margin every day, all day? Probably not.

Speaker:

I need to take a hit

with everybody going in,

Speaker:

and I'm willing to do that so that I

don't have to put it on my customers.

Speaker:

During covid, when people were upping

their prices, I stayed the same.

Speaker:

As a matter of fact,

just earlier this year,

Speaker:

first time I increased

my prices since 2017,

Speaker:

I am going to do everything

I can to get clever to

Speaker:

figure out how to,

Speaker:

I only get packaging from China,

only my primary packaging. So that's

Speaker:

the stuff that you see, like this.

Speaker:

Packaging.

Speaker:

And I get a few, and it's not pretty.

Speaker:

You don't want to pay something that might

cost you 60 cents and all of a sudden

Speaker:

have to pay $2 for it

depending on where you're at.

Speaker:

I've got a product right now on the water

that was a little scalp scrubber that

Speaker:

I got from China, and it

was a 50 cent product.

Speaker:

And right now we don't know

because when it went on,

Speaker:

it was before the tax went up to 148%.

Speaker:

And at the end of the day, if I have to

pay the tax, what going to do? Say, no,

Speaker:

I'm going to send it back. That's

one option. It is an option.

Speaker:

My CFO said,

Speaker:

you need to deny shipments coming over

right now so that you don't have to pay

Speaker:

$26,000 in taxes that you don't

know where it's going. And I agree.

Speaker:

And then tomorrow they could

change it and I could end up paying

Speaker:

$12,000 in taxes versus a 46 versus

a hundred thousand dollars in

Speaker:

taxes. So it's huge. I mean, it's

going to cut into profit margins,

Speaker:

but my hope is that smarter

brains will prevail.

Speaker:

That somebody will at some point talk

to the government and talk to somebody.

Speaker:

And there's got to be,

Speaker:

if enough of us come together

without being hysterical and

Speaker:

we have those smart conversations,

Speaker:

we have to reach a point

where there's stability.

Speaker:

And I will do everything

I can to join that

Speaker:

movement if it happens.

Speaker:

But otherwise I am just not going to

bring stuff over. That's a nice to have.

Speaker:

It's got to be a must have.

Speaker:

Totally. Yeah.

Speaker:

And I think it's a really good take

where a couple things to keep in mind,

Speaker:

and you talked about mindset. I think

that is underrated in some ways where yes,

Speaker:

we get tactical on this podcast.

Speaker:

We want to look at how can we increase

our subscription take rate and how can we

Speaker:

reduce churn and things like

that. But your mindset matters,

Speaker:

and if you are overly stressed

or panicking, you're going

to make bad decisions.

Speaker:

You're going to craft bad marketing,

it's just not going to work well for you.

Speaker:

So work on the mindset. It will

only make everything else better.

Speaker:

But I always believe there's

always a move to make.

Speaker:

There's always something you can do and

every other one of your competitors is

Speaker:

dealing with the same

stuff you are dealing with.

Speaker:

So if you can be more scrappy,

more resourceful, more crafty,

Speaker:

you can find edges.

Speaker:

And it's like there are always

opportunities in crazy times like this.

Speaker:

I do believe there'll be adjustments

made with tariffs and stuff.

Speaker:

Who knows what that will be or

when or what direction it'll be.

Speaker:

But I think you're smart. How can we

limit what we're bringing over right now?

Speaker:

I'm hearing that from a

lot of different customers.

Speaker:

How can we just bring over the essentials.

Speaker:

Or how do we work together?

Speaker:

So let's say there's five of us in the

beauty industry that have a similar

Speaker:

product that might be coming.

Speaker:

Why not set up another manufacturing

or another warehouse, for example,

Speaker:

somewhere without taxes? Share the cost

on that, bring product over. I mean,

Speaker:

this is a time where we need to

kumbaya and lean in with one another.

Speaker:

There's ways around this. Even if it

doesn't change, I'm hoping it changes,

Speaker:

but if it doesn't change, let's

not panic. Let's collaborate.

Speaker:

Let's work together. Let's figure it out.

Speaker:

Yeah. Yeah. I love that. I

love that so much. And yeah,

Speaker:

there will be winners during

this season. No doubt.

Speaker:

It's just not easy and not overly

fun, but it's where we are.

Speaker:

And so got to focus on solutions. Leah,

Speaker:

this has been absolutely

fantastic. I love your brand.

Speaker:

I love the energy you bring.

I love what you're building,

Speaker:

and we need to catch up again soon

sometime. So thanks for coming on.

Speaker:

Thank you very much. We didn't

even talk about bull riding,

Speaker:

but we'll get to that later.

Speaker:

Bull riding next time. So I

will end with this though.

Speaker:

People have to follow you on social.

So you're a great follow on LinkedIn,

Speaker:

but you're also active on

Instagram and other channels.

Speaker:

Yes, yes. I'm still old

school, Leah Garcia TV Act.

Speaker:

Elastin is where the brand is found, but

Speaker:

I am more on the speaking

circuit these days.

Speaker:

So LinkedIn is probably one of the

best places to find my whereabouts.

Speaker:

And you got some great content recently

about those speaking engagements,

Speaker:

so check it out. Leah Garcia on

LinkedIn and Instagram. Leah,

Speaker:

thank you so much. This has been an

absolute pleasure and we'll chat soon.

Speaker:

I'm stoked. Thank you so much. Cheers.

Speaker:

Awesome. As always,

thank you for tuning in.

Speaker:

Would love to hear feedback

from you. If you've not left us,

Speaker:

that review on iTunes means

the world to us. And with that,

Speaker:

until next time, thank you for listening.